1. GRINAKER-LTA / TRIDENT STEEL
Black Economic Empowerment Transaction

2. Aveng and shareholding structure :Carl Grim
PRESENTATION OUTLINE
Aveng and shareholding structure :Carl Grim
TisoGroup and transaction structure :Fani Titi
Questions
Finger lunch

3. ASSETS INCLUDED IN BEE TRANSACTION
100%
46%
Construction
(Central time zone – South African based))
(Eastern time zone – Australian based)
Steel & Allied
Cement, aggregates and concrete
Excluded from BEE transaction
Foreign subsidiary
Associate
Different charter requirements
TRIDENT STEEL
South Africa

4. AVENG BLACK ECONOMIC EMPOWERMENT STRATEGY
Equity
participation
19 different BEE companies in
past two years. In 15 of these
BEE partners hold controlling
interest
36 JV’s with BEE partners in
past two years
Current
transaction
Enterprise
development
Employment
equity
On schedule as per plan submitted to Dept of Labour
AVENG SIX LEG BEE STRATEGY
Community
investment
1% of prior year’s headline earnings in Aveng
Skills
development
142 full time bursaries and 116
apprentices in 2003
6000 employees received some form of
training at cost of R25 million
Procurement
Targeted 20% of total procurement spend

5. AVENG RATIONALE FOR THE TRANSACTION
Logical next step in Aveng’s long term empowerment strategy.
Enables our customers from the Mining, Energy, Automotive and other sectors to meet their BEE procurement objectives.
Disjointed approach to BEE within Aveng operating companies becoming increasingly difficult to manage. Operating companies to focus on enterprise development in the future.
Injection of new thinking from actively involved shareholder.
Demonstration of Aveng’s desire to embrace commercial reconciliation by leading the way in the restructuring of our industry.

6. BEE selection criteria agreed by the board
LEAD BEE PARTNER SELECTION PROCESS
BEE selection criteria agreed by the board
Existing business and joint venture partners within Grinaker-LTA & Trident Steel reviewed
Names of potential black partners submitted by Aveng directors and advisors
Desk top evaluation including personal introductions where BEE individuals concerned unknown to management
Short list of six black groups interviewed by Aveng board subcommittee.
Tiso Group selected

7. TRANSACTION STRUCTURE
GLTA and Trident
GLTA and Trident
GLTA and Trident
Aveng
Tiso Aveng
Women’s
Empowerment
Trust
Black business
partners
Employees
Tiso Group
Black business
GLTA and Trident
Partners
Women
Women
Women
Women
Women ’ ’ ’ ’ ’ ’
s Groupings ’
s Grouping
s Grouping
Employees
Employees
Employees
Employees
Employees
75%
25%
Pref Shares
75%
25%
Employees
Aveng Community
Investment Trust
Aveng Empowerment
Trust
Four Arrows (Pty) Ltd
20%
32%
48%
Qakazana Investment
Holdings (Pty) Ltd
25%
25%
Trident Steel
Holding (Pty) Ltd
Grinaker-LTA Limited

8. BROAD BASED TRANSACTION
Broadly based beneficiaries
71,2%
Aveng Community
Investment Trust
Tiso Foundation
Tiso Aveng Women’s
Empowerment Trust
Permanent
employees
Black business
partners
24% 8%
12%
20%
7,2%

9. TISOGROUP PROFILE TisoGroup TisoResources TisoIndustries TisoCapital
Mining
Majority
Interest
Strategic Minority
Interests
Advisory
Private Equity
Financial Services
Investments
Kumba Resources
Two Rivers Platinum
Idwala
AEL
Trident Steel
Grinaker LTA
TPEF I
Investec Limited
Alstom SA
Fuel Group
Jacaranda FM / NAIL
Idwala
TPEF II

10. RATIONALE FOR TISO GROUP
Fits into long-term Mining Services / Industrial Investment strategy.
Exposure to expected greater fixed domestic investment in next 10yrs.
Market leaders with quality management.
Fair entry value.
Balanced market exposure – Construction / Steel Merchanting.

11. TISOGROUP INVOLVEMENT IN THE BUSINESS
Strategic level involvement.
Positions business to take advantage of empowered status to sustain market leadership.
Entrenching existing empowerment model.
Synergistic with other Tiso business interests.
Potential to jointly pursue strategic growth opportunities.

12. SUMMARY
Sale of 25% of Grinaker-LTA and Trident Steel to a BEE consortium led by the Tiso Group for R496 million.
First significant BEE transaction in the building/construction and steel industries.
Excellent fit between Aveng and Tiso.
Over 70% of the potential proceeds of the transaction going to broadly based empowerment groupings.
Good balance between short term cost and long term sustainability considerations.